JAKARTA’S GREAT LAND TRANSFORMATION:

Neoliberal global urbanism & Asian urbanization

Eric Sheppard and Helga Leitner (with Herlambang Suryono & Liong ju Tjung—IUNTAR)Land Academy Conference, UtrechtJune 29, 2017

INTRODUCTIONJabotabek: 30 million by 2020?

INTRODUCTION▶ Particular case of urban land transformation in

postcolonial cities:▶ Prevalent urban informality▶ Periurban development▶ An emergent middle class▶ Aggressive real estate developers▶ International finance seeking to assetize land

▶ BUT: Where’s the land?

OUTLINE

1. The global context2. Three eras of land transformation in Jakarta3. Displacing informal settlements & farmland4. Kampung evictions in the name of ecological

security5. Emergent developments

▶ Peripheral positionality and pervasive informality▶ Neoliberal global urbanism▶ Neoliberalization, Indonesian-style

1. Suharto’s New Order (1988-1997): Nationalist Urbanism meets Neoliberalism

2. Reformasi 1 (1997-2007): Democratizing Neoliberal Urbanism 3. Reformasi 2 (2007-present): Rescaling Neoliberal Urbanism

▶ Developers: (Chinese)Indonesian conglomerates & some specialist firms

▶ Elite informality

1. THE GLOBAL CONTEXT

2. THREE ERAS OF LAND TRANSFORMATION IN JAKARTA

1. Nationalist Urbanism meets Neoliberalism (1988-1997)

▶ Suharto, the US, post-1980s turn▶ Development trumps the Basic Agrarian Law▶ Cukong-Cendana alliance▶ Large-scale land transfers (izin lokasi)=> New Town periurban mega-developments

1988-1997

2. Democratizing Neoliberal Urbanism (1998-2007)

▶ Developers’ debt woes, bankruptcies▶ Middle class stock-market losses

▶ Promoting consumption: Shopping Indonesia’s way out of crisis

▶ Resilient networks of political authority and economic interest (oligarchy persists)

▶ Failed Million Houses Program (2003) and 1000 Tower Program (2006) for urban majority

DKI Jakarta shopping centre boom

Jakarta 2008

1988-2007

3. Rescaling Neoliberal Urbanism (2008-present)

▶ Developers: Recovered/bailed out & ready to reinvest▶ Decentralization of power over land transformation to local

officials ▶ Opportunities for developers

▶ Increasing global orientation:▶ Global strategies of Indonesian conglomerates▶ Inward FDI (Japan)▶ Global sources of finance

=> Era of super-blocks; integrated real estate projects

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ST. MORITZ

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ST. MORITZ

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MILLENNIUM VILLAGE (LIPPO)

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ORANGE COUNTY

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1988-2016

2005

LAND Acquisition (New Town)

2000 2015

SPACE Production 1 (shopping center/mall) PIXEL

LAND &SPACE V2

1998Succession of

National Power:Reformation Era

1990 2010

3. Tr Shifting Urban Development Types

2007

new town-horizontal

high dense dev.In the center of

new town

convenience store: chain-networkshopping center

(2002-2005)

SPACE V2(mixed use-superblock)

super block (2007): FARMax – vertical

▶ Privatizing urban commons (kampungs)▶ Developers’ challenge: The market▶ Peri-urban aspects

3. DISPLACING INFORMAL SETTLEMENTS & FARMLAND

Jakarta 2009

Menteng Atas 2013

COMPLEXITY OF LAND TENURE RIGHTS

Hak milik (freehold)

Hak buna bangunan(right to commercial

use)

Hak Pakai(Right of use)

Hak Sewa (right to lease)

Adat/Hak Girik(traditional rights)

INFORMAL ECONOMY

Commodifying The Urban Commons▶ From informal to capitalist market

A. PRIVATIZATION: ‘Normalizing’ property relations

De Soto

Commodifying The Urban Commons

▶ From informal to capitalist marketA. PRIVATIZATION: ‘Normalizing’ property relationsB. COMMODIFICATION: Developers responding to

middle class demand:

INDONESIAN FAMILY CONGLOMERATES

▶ From informal to capitalist marketA. PRIVATIZATION: ‘Normalizing’ property relationsB. COMMODIFICATION: Developers responding to

middle class demand:C. ASSETIZATION: Global finance trawling the globe for

investment opportunities

Commodifying The Urban Commons

EPICENTRUM

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EPICENTRUM DEVELOPMENT

Acquisition Progress in Menteng Atas RW 02

May 2014 May 2015

Menteng Atas RW2 12-2013

Same plot 9-2014

Menteng Atas RW2 12-2013

Menteng Atas RW2 Interior walls 9-2014

Jakarta 2013

New rental housing

PERI-URBAN LAND COMMODIFICATION

▶ Development rights▶ Declaring land ‘unproductive’▶ Partial process of development▶ New opportunities for kampung residents▶ Farmland loss

4. KAMPUNG EVICTIONS IN THE NAME OF ECOLOGICAL SECURITY

“Illegal” kampungs

Jakarta 2009

World Bank/Indonesia: Jakarta Urgent Flood Mitigation Project, 2013--

Kampung Pulo Before – 12-2013

Kampung Pulo After – 8-2015

August 2015

5. EMERGENT MEGA-MEGA PROJECTS▶ Offshore: Dubai-ification of Jakarta▶ Onshore: Meikarta new city

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GREAT GARUDA SEAWALL + 17 ISLANDS